Globe Life Inc. (NYSE:GL), formerly known as Torchmark Corp., is under scrutiny following an investigation initiated by Kaskela Law LLC. This investigation is on behalf of long-term shareholders and follows a securities fraud complaint. The complaint targets investors who purchased shares between May 8, 2019, and April 10, 2024, alleging that Globe Life and certain executives made false and misleading statements, violating federal securities laws.
The situation intensified on April 11, 2024, when Fuzzy Panda reported that Globe Life and its subsidiaries were involved in insurance fraud. Allegations included adding policies to users' accounts without consent and underwriting policies for deceased or fictitious individuals. The report also pointed to a toxic workplace environment, with issues like sexual harassment and drug use allegedly ignored.
Following these revelations, Globe Life's stock price dropped significantly by $55.76 per share, a 53% decrease, closing at $49.17 on April 10, 2024. This drop occurred amid unusually high trading volumes, raising concerns about the company's governance and compliance with securities laws. The ongoing investigation seeks to determine if Globe Life's board of directors violated securities laws or breached their fiduciary duties.
Despite these challenges, Globe Life reported earnings per share of $3.14 on February 5, 2025, surpassing the estimated $3.12. The company generated revenue of approximately $1.47 billion, slightly below the estimated $1.48 billion. The stock reached a high of $123.44 today, indicating some recovery and investor confidence despite past issues.
